No, it means that there is a road in the village that does not end at the end of the village, but continues on into the hills. Unless there were additional information to suggest otherwise, I would assume that the road goes to the village, then through the village, then out the other side of the village.
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tenjingThe road continues beyond the village up into the hills.The road (wherever it is) keeps on going. It goes farther than the village, that is, past the village, and keeps going up into the hills.